JOINT MEDIA RELEASE
Australia and Germany Welcome Investment in Australian-Led Lithium Project in Germany
The Federal Ministry for Economic Affairs and Energy and the Australian Embassy in Berlin welcome the investments from Germany and Australia into Vulcan Energy’s Phase One Lionheart Project in the Upper Rhine Valley, Germany.
Australian company Vulcan Energy has announced that it has finalised a financing agreement for its €2.193 billion (~AU$3.9 billion) Project.
The German government's raw materials fund, managed by Kreditanstalt für Wiederaufbau (KfW), is investing up to €150 million in Vulcan to support the realization of the Lionheart project and strengthening the resilience of European and German raw materials supplies.
Export Finance Australia (EFA), the Australian Government’s export credit agency, has played an essential role in this financing, providing an early approval for €120 million (~AU$196 million) to support the expansion of Australian-led expertise into Europe’s clean energy supply chain.
The Project will produce battery-quality lithium hydroxide monohydrate (LHM) from geothermal brine and simultaneously generate renewable heat and power. The Project will substantially contribute to the climate goals and industrial decarbonisation efforts of Australia and Germany.
These investments underscore Germany and Australia’s shared ambition to secure sustainable and diversified supply chains for critical minerals, broadening sources of supply and reducing strategic vulnerabilities essential to the global energy transition.
In addition to Australian and German investment, the Project has also secured financial support from the European Investment Bank, Export Development Canada, Export and Investment Fund of Denmark, Bpifrance Assurance Export, and Servizi Assicurativi del Commercio Estero (SACE).
The Project comes at a historic time of deepening relationships between Europe, Australia and Germany on critical raw materials. On 17 November, the European Investment Bank (EIB) and Australia signed a Declaration of Intent to strengthen cooperation on critical minerals investment. This marks the first step towards enabling EIB support for financing critical minerals projects in Australia.
This will further the work committed to under the MoU between the European Union and Australia on strategic partnership on a sustainable critical and strategic minerals signed last year.
Quote attributable to the German Minister for Economic Affairs and Energy Katherina Reiche
“With the first project supported by Germany’s Raw Materials Fund, we are sending a strong signal: Germany and Australia are jointly taking a decisive step towards greater resilience in raw materials supply. Our countries bring complementary strengths – Australia as a reliable raw materials and technology partner, and Germany with its industrial innovative power.
Projects like Vulcan Energy’s in the Upper Rhine Valley deepen our longstanding economic ties and create a more strategic and broadly based partnership. In the face of global challenges, reducing dependencies is more important than ever. Germany and Australia are ideal partners in this effort – and this launch shows that we mean it.”
Quote attributable to the Australian Ambassador to Germany Natasha Smith
“Australia and Germany are working together to build sustainable, diversified supply chains for critical minerals essential to the global energy transition. The finalisation of Vulcan Energy’s financing – supported by Germany’s Raw Materials Fund and Export Finance Australia – represents a significant milestone and is a clear demonstration of what our partnership can achieve.
The complementarities between Australia and Germany have never been more compelling. Australia is a trusted and responsible supplier of critical raw materials, underpinned by world-class expertise in sustainable resource development. Germany brings industrial innovation and a strong commitment to decarbonisation. Together, we are strengthening supply chain resilience to meet Europe’s growing demand for critical raw materials and advance our shared vision for a clean energy future.”
Media Contacts
Laura Benjamin, Public Diplomacy Manager, Australian Embassy Berlin, P +49 (0)30 88 00 88 262 | M +49 (0)152 02093881